August 20, 2012
THE PEOPLE’S FRANCHISE
Did you know that franchising was almost outlawed in the early 60’s for being a pyramid scheme? Ray Kroc (the founder of MacDonald’s went to bat and fought the government. Franchising was considered a “scam and a scheme”! He won. Today we don’t think anything of it! Thousands of people each year risk their life savings to start a traditional franchise. Buying a franchise can range between $20,000 and over $1 million. And that’s just the beginning. That doesn’t include the overhead (leases, product, utilities, legal, employee salaries, FICA, OSHA, licensing, franchise fees, etc). Most good franchising organizations will tell you that you’ll need to run your business for 3-5 years just to break even. Many don’t make it! At many events I ask those that invested $100,000 or more into a business to raise their hands. 95% of them lost their money! We don’t ask people to risk everything. We ask them to risk less than $1000 and a little bit of time. Most people start part-time with the potential to earn substantially more than the potential of a franchise.
In 90% of the franchise opportunities, there is no residual component. We have the best marketing model available today. SendOutCards has, by far, the most exciting and value-added product available in the marketplace. Gratitude is a product that everyone can buy into and it’s more valuable than any other product in the marketplace today. Gratitude fuels the human spirit. It lifts people up! It makes people happier and more productive. It feeds the soul.
Why Network Marketing?
Let’s explore a few options for creating additional income. Before we do, I want you to realize that MOST people are looking for ways to increase their income. 70% plus of our population have never done network marketing. 95% are living paycheck to paycheck. Each month they are a little behind. This is why credit card debt is so high. Bankruptcies and forecloses are at an all-time high. Most people have given up! But we show them a viable option. Without changing much, they can start a business with all the tax benefits of a traditional business. We offer an option that has all the upsides and none of the downside. In general, business success requires contacts, creativity, resourcefulness, leadership, patience, integrity, resiliency and teamwork. We are no different. The main difference is the level of risk is eliminated, the ability to start PT AND a residual component that is unmatched in traditional business.
When we explore the other options for creating additional income we can quickly see that network marketing offers the best solution:
- Get a second job-adds time to your schedule vs freeing up your time. Childcare can quickly eat up any additional income you make. No residual.
- Start a traditional business-$20,000-$250,000 to start. Years to break even. High failure rate. No residual. Your business owns you!
- Open a franchise-$20,000-$1 million to start. Years to break even. No residual. Your business owns you!
- Go back to school-$10,000-$50,000. No guarantee, but a diploma. Worst financial investment you can make in terms of ROI. Look at the results of employees that have worked for 30 years with a degree. It’s grim.
- Win the lottery-How many people do you know that have become financially independent winning the lottery. Maybe you should first try and get struck by lightning.
- Invest-To earn $1000 a month in residual – assuming you can get 5% on your principle, you will need to save $240,000. Morel likely 2% return if you want to keep your principle and not risk it – Need to save $480,000 . . .
how long will that take you?
How many years have you been working? Have you saved that much to date?
NETWORK MARKETING: Work PART TIME for 3-5 years. Gain the leverage of time and people. Increase your residual by at least $1000 a month per year. That’s the equivalence of saving $240,000-$480,000 per year in savings. No employees to manage. No products to purchase. No overhead. No major capital investment. Tax benefits of a big business.
We live in a microwave society where everyone wants it now. Fast money is rarely stable money. A promise of easy money is almost always an empty shell. It always looks good up front. Do you want to be a eucalyptus tree or an oak tree. Oak trees live forever. Eucalyptus trees die young. You are with SOC during the “sweet spot” of development. We have the freshness of a startup but the stability of a well-established company. There are big things in the works. When you sign someone up and they don’t do anything, that doesn’t mean much. In network marketing, sometimes your “dormant” organizations come to life with new growth. Sometimes that can take years. Every week we have people that signed up years ago that did nothing and now they are going to work. What if one of these people that did nothing for 2 years goes to work and brings in the next Jim Packard, Judy O’Higgins or Tommy Wyatt. I’ve had this happen a few times! Most people don’t have the patience and that’s why most people don’t make money.
Let’s talk about quick money to the extreme. Check Cashing Stores, quick money. “I want my money NOW!!” Go ahead and cash your check there! You’ll pay up to 20% fees to do it. And then look at the financial situation of those that use those “quick money” outlets? Most are financially destitute! Do you think financially successful people use check cashing stores to get their money? Of course not. Yet when we make our decisions based on getting our money NOW, (even in network marketing) we are positioned just like that destitute person that is living paycheck to paycheck.
Who does the bank want to give a loan to? Will someone with $200,000 in cash have an easier time getting a loan than someone with $50,000 in credit card debt?
Of course! Why? Because “broke” people aren’t typically as dependable to pay the money back.
How does all of this apply to your business. Whether you have money or not (I was $36,000 in debt on my credit cards when I finally started making money in Network Marketing), you can position yourself for a solid, long-term residual income as long as you don’t become emotionally desperate. Desperation causes people to lose patience and make rash decisions that will hurt them financially in the long run. When a quick buck is involved, run the other way. THE REASON THE MASSES ARE ALWAYS CHASING THE MONEY AND NEVER SEEM TO GET IT IS BECAUSE THEY ARE MAKING DECISIONS BASED ON A SCARCITY MENTALITY. If you want to spend the rest of your life broke, keep going after the easy money. That’s what broke people do over and over again.
Instead, invest your time into social capital. Build solid and long term relationships. Don’t succumb to “hype”. Be patient and stick with the fundamentals. Don’t quit on your team (and your team consists of EVERYONE. Not just those in your downline). Be rock solid in your resolve to see the job through. Keep your eyes focused on the sun and don’t chase the fireflies.